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• The investment is a step towards advancing the clean energy transition
• EV charging stations will be built along designated alternative fuel corridors on the national highway system
The Biden administration has rolled out a plan to spend $5 billion over five years on developing electric vehicle (EV) chargers along interstate highways, pushing for the acceptance of the vehicles.
“We are modernizing America’s national highway system for drivers in cities large and small, towns and rural communities, to take advantage of the benefits of driving electric,” U.S. Energy Secretary Jennifer Granholm said in a statement.
Rolling out the plan
The government will allocate the funds to the states, as part of the bipartisan infrastructure package that includes $7.5 billion, of which $2.5 billion will be doled out in competitive grants focused on rural and underserved communities, according to a joint announcement by the departments of Transportation and Energy.
Officials during the call Wednesday said they will unveil guidance on the other $2.5 billion for EV charging stations later this year. The funding will involve discretionary grants for corridor and community EV charging.
States will have to submit an EV Infrastructure Deployment Plan to a new Joint Office of Energy and Transportation that describes how a state intends to use its share of the funds. Applicants will have to comply with the guidelines that will soon be issued by the Federal Highway Administration.
The Financial Post reported that Texas could expect to receive about $408 million over five years under the plan, the most of any state. California would be second.
Last November, at an event in Detroit celebrating the production of the electric Hummer SUV, President Biden had praised the bill, stating, “This infrastructure law with my Build Back Better plan, we’re going to kickstart new batteries, materials, and parts production and recycling, boosting the manufacturing of clean vehicles with new loans and new tax credits.”
In response to this passage of the bill, Tesla (NASDAQ: TSLA) CEO Elon Musk slammed the bipartisan infrastructure bill, highlighting his concerns regarding the “insane” federal deficit.
With inputs from CNBC